Their books are lovely (as I've reviewed more than a few) and they are one of the few picture book publishers who will buy long books. They use fantastic illustrators. And a writer I know who had a picture book published by them (Dotti Enderle/Grandpa for Sale) had this to say about her book with them on a recent discussion board: "GRANDPA FOR SALE was a Borders Original Voices selection, and is on the upcoming Arizona and Indiana state reading lists because of efforts made by Flashlight."
They have a super tiny list. I've read all their picture books. They tend to be strongly family focused.